The international conflict over Russia’s involvement in Ukraine and its possible link to the downing of Malaysian Airlines Flight 17 has spilled into the western technology sector.

Russia’s parliament is drafting a bill to reduce the country’s reliance on foreign technology suppliers following U.S. sanctions against some of its biggest firms. The move could hurt global technology vendors such as International Business Machines Corp. and Hewlett-Packard Corp., Bloomberg reports. More sanctions, including some from European leaders, could be on the way over accusations of a Russian link to the downing of a Malaysian Airlines jet last week.

The bill, currently being prepared by Russia’s lower house of parliament, would make government and state-run companies give preference to local software and hardware providers, and favor products that don’t have imported, licensed components. “Given the current international tensions, substituting imports with local software and hardware becomes the key to ensuring self sufficiency,” Andrey Chernogorov, executive secretary of the commission for strategic information systems, told Bloomberg.

The moves by Russia come as U.S. technology vendors continue to deal with the fallout from revelations by former National Security Agency contractor Edward Snowden of a massive Internet spying effort by U.S. intelligence agencies. China, Russia and other countries have exploited the episode to push for an agenda of using domestic technology providers.

The bill’s preparation was accelerated after reports that American technology companies might cut off service to Russian banks to comply with U.S. sanctions triggered by Russia’s role in the Ukraine, according to the report. The proposal may be submitted for a vote in parliament in September.

Combined, H-P, IBM, Microsoft Corp., Oracle Corp., SAP SE and Cisco Systems Inc. brought in $8.1 billion in revenue from Russia last year, with H-P and IBM making up about 78% of total sales, according to estimates by the Russian Academy of Sciences included in the commission’s document and noted by Bloomberg.

In a statement to CIO Journal, H-P said it “strictly complies with the laws of the countries where we do business,” and that it is focused on providing quality products and services in compliance with applicable law. Representatives for Oracle, Microsoft and SAP declined to comment about the U.S. sanctions, Russia’s new rules, or a potential loss of business in Russia if the rules go into effect. IBM and Cisco did not respond to requests for comment.

U.S. sanctions rolled out to pressure Russian President Vladimir Putin have already dealt a blow to multinational companies across other industries. The political standoff between the Kremlin and the West, paired with the threat of more economic sanctions, has clouded the longer-term revenue and earnings forecasts for some U.S. and EU firms. Maxwell Technologies Inc., which makes chips for satellites that can withstand solar flares, told the WSJ in May that it estimated it could lose $2 million in revenue this year following the U.S. government’s decision to withhold export licenses for shipments with military ties to Russia.

Russia’s proposal follow steps taken by other countries and companies to be more choosy about the firms they do business with, whether prompted by economic sanctions or perceived national security risks. Following a report from Der Spiegel in December that the NSA had targeted products from Huawei Technologies Co., among other companies, with malicious software that creates backdoors in products, the telecommunications vendor’s Washington-D.C. based vice president of external affairs, William Plummer, noted that “there’s a very real concern for political or geography-based balkanization, which is in nobody’s best interest.”

Leaks by Mr. Snowden also spread fears that this “balkanization” could expand to other markets and technology providers, which could in turn hamper the innovation and simplification potential promised by cloud services and other technologies. “There’s a better than 50% chance of some trade barriers” being erected because of the NSA revelations, J. Bradford Jensen, a professor at Georgetown University’s McDonough School of Business, told CIO Journal in April. “This could be a real problem for any multinational’s operations.”